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Bull Market

Special Interests Get a High Return for Dollars Invested in Lansing

IMAGE imgs/glb-su.fa9820.gif

The most effective ways to gain access to
policy makers in Lansing are to 1) build a
constituency through grassroots organizing or,
2) buy it.
And in Lansing, it doesn't cost much these
days for special interests to purchase influence.
For example, according to figures from the
Michigan Secretary of State's Office and the

National Institute on Money and State Politics, the oil and gas industry has given state regulators, legislators,
and the Governor a fairly small amount of money. Yet state officials have opened northern Michigan to
runaway drilling, given out tens of millions of dollars in subsidies and settlements, and consistently weakened
or blocked reforms opposed by the industry.
Access to Information Is Difficult
Any serious analyst looking at how campaign contributions relate to final policy decisions will find the
road rough going in Michigan. Figures are not compiled by industry sector. Also, to find out how much oil
and gas company employees and stockholders gave before 1995, one must not only know their names but
must head to Lansing to sift through thousands of forms.
Direct vs. "Soft" Money
The purchase of influence comes in the form of direct contributions, made by individuals and political
action committees to a candidate's election campaign. There also is a growing trend in using "soft" money,
unlimited contributions made through committees such as the Michigan Republican State Committee or the
Michigan House Democratic Fund. Legally, soft money cannot be used to ask people to vote for a specific
candidate. In reality, soft money is often used to sway elections through ads attacking or supporting a
candidate's positions.
According to figures collected by the Institute from the Michigan Secretary of State and the Detroit Metro
Times, direct oil and gas contributions from individuals and companies to Gov. John Engler amounted to
$383,400 from 1990 to 1998. The Secretary of State's records show that House and Senate legislators received
a total of $1,527,600 in direct and soft money from 1994 through the 1998 primary campaign. Republicans
received 60% of the total, Democrats 40%.
One Example
The Institute was able to pin down one example through the Center for Responsive Politics in Washington,
D.C.:
• Wolverine Environmental Production, an energy company, and Miller Brothers Oil Co. received the
majority of a $94.85 million taxpayer-financed settlement in a "takings" lawsuit over drilling in the Nordhouse
Dunes. Since the 1995 settlement through the 1998 primary, Sid Jansma, president of Wolverine, gave a total
of $24,749 in political contributions, including $3,400 to Gov. Engler and $6,000 to the Michigan Republican
State Committee. The Miller family gave a total of $41,800, including $25,000 to the Republican National
Committee and $10,200 to support the Governor.
Making It a Little Easier
Lynn Jondahl, a former state representative from Okemos, is setting out to improve campaign contribution
accountability with the newly-founded Michigan Campaign Finance Project. Also, it's now possible to obtain
recent contribution records on the Internet from the Michigan Secretary of State's web site. Go to
< www.sos.state.mi.us/election/elect.html>.
The raw data still is not processed in a meaningful way, and you still need to know each contributor's name;
but at least you don't need to travel.G
CONTACTS: Michigan Secretary of State, 517-373-2540; National Institute on Money and State Politics,
406-449-2480; Center for Responsive Politics, 202-857-0044, < www.crp.org>; Johnston Mitchell, Michigan
Campaign Finance Project, 517-482-7198; Arlin Wasserman at the Institute, 616-882-4723.



		Bull Market Special Interests Get a High Return for Dollars Invested in Lansing

			The most effective ways to gain access to policy makers in Lansing are to 1) build a constituency through grassroots organizing or, 2) buy it. And in Lansing, it doesn't cost much these days for special interests to purchase influence. For example, according to figures from the Michigan Secretary of State's Office and the
		National Institute on Money and State Politics, the oil and gas industry has given state regulators, legislators, and the Governor a fairly small amount of money. Yet state officials have opened northern Michigan to runaway drilling, given out tens of millions of dollars in subsidies and settlements, and consistently weakened or blocked reforms opposed by the industry. Access to Information Is Difficult Any serious analyst looking at how campaign contributions relate to final policy decisions will find the road rough going in Michigan. Figures are not compiled by industry sector. Also, to find out how much oil and gas company employees and stockholders gave before 1995, one must not only know their names but must head to Lansing to sift through thousands of forms. Direct vs. "Soft" Money The purchase of influence comes in the form of direct contributions, made by individuals and political action committees to a candidate's election campaign. There also is a growing trend in using "soft" money, unlimited contributions made through committees such as the Michigan Republican State Committee or the Michigan House Democratic Fund. Legally, soft money cannot be used to ask people to vote for a specific candidate. In reality, soft money is often used to sway elections through ads attacking or supporting a candidate's positions. According to figures collected by the Institute from the Michigan Secretary of State and the Detroit Metro Times, direct oil and gas contributions from individuals and companies to Gov. John Engler amounted to $383,400 from 1990 to 1998. The Secretary of State's records show that House and Senate legislators received a total of $1,527,600 in direct and soft money from 1994 through the 1998 primary campaign. Republicans received 60% of the total, Democrats 40%. One Example The Institute was able to pin down one example through the Center for Responsive Politics in Washington, D.C.: • Wolverine Environmental Production, an energy company, and Miller Brothers Oil Co. received the majority of a $94.85 million taxpayer-financed settlement in a "takings" lawsuit over drilling in the Nordhouse Dunes. Since the 1995 settlement through the 1998 primary, Sid Jansma, president of Wolverine, gave a total of $24,749 in political contributions, including $3,400 to Gov. Engler and $6,000 to the Michigan Republican State Committee. The Miller family gave a total of $41,800, including $25,000 to the Republican National Committee and $10,200 to support the Governor. Making It a Little Easier Lynn Jondahl, a former state representative from Okemos, is setting out to improve campaign contribution accountability with the newly-founded Michigan Campaign Finance Project. Also, it's now possible to obtain recent contribution records on the Internet from the Michigan Secretary of State's web site. Go to < www.sos.state.mi.us/election/elect.html>. The raw data still is not processed in a meaningful way, and you still need to know each contributor's name; but at least you don't need to travel.G CONTACTS: Michigan Secretary of State, 517-373-2540; National Institute on Money and State Politics, 406-449-2480; Center for Responsive Politics, 202-857-0044, < www.crp.org>; Johnston Mitchell, Michigan Campaign Finance Project, 517-482-7198; Arlin Wasserman at the Institute, 616-882-4723.